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Asia close: Stocks fall as World Bank cuts China growth forecasts

Stock markets in Asia traded lower on Monday as the Bank of Japan (BoJ) kicks off its two-day policy meeting, the World Bank trimmed its growth forecasts for China and East Asia and as investors sold off technology stocks.

In its latest East Asia and Pacific economic update report, the World Bank reduced its 2014 growth forecast for developing East Asia. However it did say growth in the area would likely see steady growth over the next few year on the back of global growth and trade.

The Washington-based development bank said it anticipates the developing East Asia and Pacific (EAP) region to grow 7.1% in 2014 and 2015 compared to its previous forecast of 7.2% for both years.

Growth in 2016 is also expected to remain at 7.1%, a touch below 2013's growth rate of 7.2%.

The World Bank also trimmed its 2014 growth forecast for China to 7.6% from a previous growth prediction of 7.7%, reflecting what it described as "the bumpy start to the year" which included weaker-than-expected industrial production and exports. In 2013 China's annual growth rate stood at 7.7%.

Meanwhile BoJ Governor Haruhiko Kuroda could come under pressure to announce further easing action to bolster the Japanese economy after the planned sales tax increase, which started earlier this month. The BoJ meeting is expected to conclude on Tuesday.

The benchmark Nikkei 225 retreated 1.69% or 254 points at 14,808 in Tokyo while the broader Topix lost 19 points or 1.57% at 1,196. The Hang Seng dropped 145 points or 0.65% 22,364 in Hong Kong.

Stocks on the move included heavyweight SoftBank which tumbled 4.6% after the US tech stock sell-off. Other stock movers included Panasonic which tumbled 5.0% as the strong yen hit exporters at the start of the week. Honda Motor dropped 2.8%.

Sumitomo Mitsui Financial fell 3.2% while Hitachi lost 3.6%.

Renesas bucked the downward trend, rising 4% on speculation that it would sell its stake in a chip-making venture to Apple.

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